Mizrahi Tefahot (MZTF) AI Stock Analysis

• Market Cap: ₪62.86B
• Dividend Yield: 4.11%
• Average Volume (3M): 409.64K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.19
• Revenue Growth: 11.00%
• EPS Growth: 6.03%
• Country: IL
• Employees: 7,211
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 540.10
• Shares Outstanding: 259,960,820
• 10 Day Avg. Volume: 420,187
• 30 Day Avg. Volume: 409,640
• PEG Ratio: 3.80
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 3.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 23.52
• Revenue Forecast (FY): ₪16.05B

• Rating: 75 Outperform
• Price Target: 27,585.00 ▲(14.56% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 03/03/26

The score is driven primarily by strong financial performance and attractive valuation (low P/E and solid dividend yield). The earnings call reinforces the strength with continued profitability, cost discipline, and credit growth, while the main restraint is mixed near-term technical momentum (negative MACD and below the 20-day average).

Positive Factors

Sustained profitability

Consistent high margins and ROE (~15%–19%) indicate a durable earnings engine. Strong operating profitability and net margins reflect a business model (mortgages, loans, fees) that generates stable net interest income and supports dividend capacity and reinvestment over the medium term.

Strong credit and mortgage growth

Broad-based loan expansion and resilient mortgage demand underpin longer-term net interest income growth and market share retention. Diversified credit growth across mortgages, corporate and middle-market reduces concentration risk and supports sustainable revenue expansion.

Improving capital & liquidity position

Healthy capital ratios, a high share of core deposits and reduced leverage versus prior years strengthen resilience. Improved capitalization provides buffer for credit cycles, supports dividend distribution policies and enables measured balance-sheet growth without immediate capital raises.

Negative Factors

Meaningful leverage remains

Although improved from earlier years, elevated leverage typical of banking (debt ~1.2x equity) leaves earnings and capital sensitive to credit losses, interest-rate swings and market volatility. This structural leverage limits downside protection during adverse cycles.

Volatile cash flow generation

Strong recent FCF conversion is offset by prior erratic operating cash flow and a ~31% TTM decline after 2024 gains. Persistent cash-flow volatility can constrain consistent capital deployment, elevate refinancing risk in stress, and complicate longer-term planning.

Regulatory and tax headwinds

New taxes and mandated client relief represent structural policy shifts that compress net margins and increase operating costs. Ongoing regulatory interventions could reduce sustainable returns, raise provisioning needs or limit flexibility in pricing and dividend policy over multiple quarters.

Mizrahi Tefahot Business Overview & Revenue Model

Company Description

Mizrahi Tefahot Bank Ltd., together with its subsidiaries, provides a range of international, commercial, domestic, and personal banking services to individuals and businesses in Israel, Switzerland, and internationally. It operates through six segments: Household, Small Business, Private Banking, Commercial Banking, Business Banking, and Financial Management. The company offers checking, savings, and deposits accounts; and loans, such as instant, home renovation, auto, all-purpose, student, and business; mortgages; and credit cards. It also provides foreign trade services, including import, export, and documentary credit; bank guarantees; transactions in foreign currency, which include trading in derivative instruments, factoring services, and investments in deposits and securities; financing of real estate and construction projects; mergers and acquisitions services; and private and online banking services. In addition, the company offers capital market services, including consultancy for capital market activities, distribution of mutual funds, management of securities portfolios for clients, pension advisory service, trust services, provision of registration services; operates provident funds, mutual funds, and insurance incidental to mortgages; and participates in syndication transactions, as well as engages in credit operations. As of December 31, 2021, it operated through a network of 225 branches and business centers, including 52 Bank Yahav branches and 29 Union Bank branches in Israel; and two bank affiliates. The company was formerly known as United Mizrahi Bank Limited and changed its name to Mizrahi Tefahot Bank Ltd. in November 2005. The company was incorporated in 1923 and is headquartered in Ramat Gan, Israel.

How the Company Makes Money

Mizrahi Tefahot generates revenue through various channels including interest income from loans, fees from banking services, and commissions from investment products. The bank earns a significant portion of its income from mortgage lending, which is a core focus area, providing home loans to consumers. Additionally, MZTF benefits from fee-based income through services such as account maintenance, financial advisory, and wealth management. The bank also engages in strategic partnerships with fintech companies to enhance its digital offerings, thereby attracting more clients and increasing transaction volumes, which contribute to its earnings.

Mizrahi Tefahot Financial Statement Overview

Summary

Overall financials are solid: strong profitability and returns (TTM net margin ~19%, ROE ~17%) with re-accelerating TTM revenue growth (~29.5%). Offsetting this, balance-sheet leverage remains meaningful (debt ~1.2x equity) and cash-flow results have been volatile year-to-year despite strong recent FCF conversion (~0.96x net income).

Income Statement

Profitability is strong and consistent: TTM (Trailing-Twelve-Months) net margin is ~19% with operating profitability around ~31%, broadly stable versus 2024. Revenue growth re-accelerated in TTM (~29.5%) after a more modest 2024 (~7%), and net income has climbed steadily from 2020 to TTM. The main weakness is a multi-year downward drift in gross margin (from ~82% in 2020 to ~49% TTM), indicating less favorable economics/mix even as earnings remain solid.

Balance Sheet

Capital and returns look healthy for a regional bank: return on equity is consistently strong (~15%–19%) and sits at ~17% in TTM. Leverage remains meaningful with debt running at roughly 1.2x equity in TTM (improved from ~1.86x in 2021), while assets have expanded materially over time. The key risk is that leverage is still elevated in absolute terms (common in banking), so results can be more sensitive to credit/market cycles despite the improving trend.

Cash Flow

Cash generation is currently very strong: TTM free cash flow is close to net income (~0.96x), and both operating and free cash flow jumped sharply versus the weaker 2022–2023 period. However, free cash flow growth is volatile (TTM down ~31% after growth in 2024), and 2023 showed unusually weak/erratic operating cash flow versus reported earnings, highlighting variability that investors should monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.59B	28.65B	26.77B	19.20B	13.12B
Gross Profit	14.39B	14.67B	14.74B	13.24B	10.25B
EBITDA	9.41B	9.27B	8.16B	7.29B	5.37B
Net Income	5.63B	5.46B	4.91B	4.47B	3.19B
Balance Sheet
Total Assets	551.17B	485.64B	448.20B	428.29B	392.27B
Cash, Cash Equivalents and Short-Term Investments	100.43B	82.64B	85.96B	93.67B	95.27B
Total Debt	43.05B	40.18B	37.81B	34.07B	38.66B
Total Liabilities	514.75B	452.91B	419.50B	403.42B	370.54B
Stockholders Equity	34.77B	31.29B	27.46B	23.78B	20.77B
Cash Flow
Free Cash Flow	16.08B	13.77B	3.09B	3.51B	3.79B
Operating Cash Flow	16.68B	14.38B	3.53B	3.90B	4.13B
Investing Cash Flow	-57.10B	-43.35B	-20.46B	-34.40B	-25.12B
Financing Cash Flow	41.36B	25.08B	9.84B	28.24B	30.24B

Mizrahi Tefahot Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24080.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MZTF, the sentiment is Neutral. The current price of 24080 is below the 20-day moving average (MA) of 24905.00, below the 50-day MA of 24260.60, and above the 200-day MA of 21863.74, indicating a neutral trend. The MACD of -96.54 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:MZTF.

Mizrahi Tefahot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMI	80 Outperform	₪115.37B	11.34	15.67%	3.70%	6.95%	12.41%
MZTF	75 Outperform	₪62.86B	11.15	16.87%	4.11%	11.00%	6.03%
DSCT	75 Outperform	₪47.61B	11.08	13.10%	3.69%	14.48%	4.65%
FIBI	69 Neutral	₪27.68B	11.93	16.48%	4.57%	14.16%	1.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
POLI	64 Neutral	₪105.06B	11.47	15.13%	3.54%	19.05%	18.98%